EntryPoint Capital LLC Takes Position in Archrock, Inc. $AROC

Key Points

• EntryPoint Capital LLC acquired a new position in Archrock, purchasing 13,571 shares valued at approximately $356,000 during the first quarter.
• Archrock reported a 41.6% increase in revenue year-over-year, totaling $383.15 million for the quarter ending August 4th, with earnings per share of $0.39, exceeding estimates.
• The company recently announced a quarterly dividend increase to $0.21 per share, reflecting a yield of 3.4% and a payout ratio of 63.64%.

EntryPoint Capital LLC bought a new position in Archrock, Inc. (NYSE:AROC - Free Report) during the 1st quarter, according to its most recent filing with the SEC. The institutional investor bought 13,571 shares of the energy company's stock, valued at approximately $356,000.

Other institutional investors and hedge funds have also bought and sold shares of the company. Teachers Retirement System of The State of Kentucky lifted its stake in Archrock by 34.4% in the 1st quarter. Teachers Retirement System of The State of Kentucky now owns 55,528 shares of the energy company's stock worth $1,457,000 after purchasing an additional 14,200 shares in the last quarter. KBC Group NV lifted its stake in Archrock by 13.2% in the 1st quarter. KBC Group NV now owns 8,030 shares of the energy company's stock worth $211,000 after purchasing an additional 937 shares in the last quarter. GAMMA Investing LLC lifted its stake in Archrock by 26.7% in the 1st quarter. GAMMA Investing LLC now owns 9,098 shares of the energy company's stock worth $239,000 after purchasing an additional 1,917 shares in the last quarter. Allspring Global Investments Holdings LLC raised its position in shares of Archrock by 53.9% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 27,402 shares of the energy company's stock valued at $725,000 after buying an additional 9,594 shares in the last quarter. Finally, SG Americas Securities LLC purchased a new stake in shares of Archrock during the 1st quarter valued at $522,000. 95.45% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several analysts have recently weighed in on AROC shares. Sidoti upgraded shares of Archrock to a "hold" rating in a research report on Wednesday, May 7th. Evercore ISI lowered their price objective on shares of Archrock from $32.00 to $31.00 and set an "outperform" rating on the stock in a research report on Wednesday, August 6th. Five investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $28.40.

Archrock Trading Up 1.3%

Archrock stock traded up $0.31 during trading hours on Tuesday, reaching $24.33. The stock had a trading volume of 641,414 shares, compared to its average volume of 1,419,783. The stock has a market cap of $4.28 billion, a PE ratio of 18.46, a PEG ratio of 1.30 and a beta of 1.10. Archrock, Inc. has a 52 week low of $18.38 and a 52 week high of $30.44. The company has a debt-to-equity ratio of 1.86, a current ratio of 1.81 and a quick ratio of 1.30. The company has a fifty day simple moving average of $23.86 and a 200-day simple moving average of $24.66.

Archrock (NYSE:AROC - Get Free Report) last announced its quarterly earnings results on Monday, August 4th. The energy company reported $0.39 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.37 by $0.02. The business had revenue of $383.15 million for the quarter, compared to analyst estimates of $366.34 million. Archrock had a net margin of 17.17% and a return on equity of 18.74%. The company's revenue was up 41.6% on a year-over-year basis. During the same quarter last year, the firm earned $0.23 EPS. Analysts forecast that Archrock, Inc. will post 1.09 EPS for the current fiscal year.

Archrock Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, August 12th. Shareholders of record on Tuesday, August 5th were issued a $0.21 dividend. This is a boost from Archrock's previous quarterly dividend of $0.19. The ex-dividend date of this dividend was Tuesday, August 5th. This represents a $0.84 dividend on an annualized basis and a yield of 3.5%. Archrock's payout ratio is 63.64%.

Archrock announced that its Board of Directors has authorized a share repurchase plan on Monday, May 5th that authorizes the company to buyback $50.00 million in outstanding shares. This buyback authorization authorizes the energy company to reacquire up to 1.2% of its shares through open market purchases. Shares buyback plans are often a sign that the company's management believes its stock is undervalued.

Insider Transactions at Archrock

In other news, SVP Eric W. Thode sold 10,000 shares of Archrock stock in a transaction dated Tuesday, August 12th. The shares were sold at an average price of $23.54, for a total transaction of $235,400.00. Following the sale, the senior vice president owned 224,809 shares of the company's stock, valued at approximately $5,292,003.86. The trade was a 4.26% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 2.60% of the stock is currently owned by company insiders.

Archrock Company Profile

Archrock, Inc, together with its subsidiaries, operates as an energy infrastructure company in the United States. The company operates in two segments, Contract Operations and Aftermarket Services. It engages in the designing, sourcing, owning, installing, operating, servicing, repairing, and maintaining of its owned fleet of natural gas compression equipment to provide natural gas compression services.